There are some risks that require their own policy that are not covered under a primary home and auto policy. Those risks include Earthquake, Flood, and Umbrella. For instance if you own a property but rent it out to others you would need a Dwelling Fire or Landlord policy not a Homeowners policy.
If you own a property but rent it out, you will need a Dwelling Fire/Landlord policy. This policy is going to cover the structure, provide a loss of rent if the home isn’t able to be lived in after a covered loss, liability and much more. The policy does not cover the contents of your renters. They are responsible for obtaining their own Renters policy to cover their belongings. American Diversified Insurance Services, Inc has many companies that offer a very comprehensive Landlord package.
An Umbrella policy is an additional liability policy. The limit starts at $1 million and can be increased according to your specific insurance company. This policy will cover over all of your primary policies for extra protection. Umbrella policies do require you to have the highest amount of liability offered on your primary policies in order for you to obtain the coverage. The Umbrella policy will come into play after your primary policies liability limits have been exhausted. This policy is for the customer who may have more assets to protect; such as multiple rental properties, high value vehicles, designer homes, or young drivers on your auto policy.
Earthquake and Flood losses are not covered under a primary home or dwelling fire policy. Those two risks each require a policy on their own. California is notorious for earthquakes and you’ll want to make sure you are protecting your home and your belongings. The Earthquake policy will cover the structure of your home, and a small amount of coverage for other structures, and your personal property.
A flood isn’t always a rushing river of water through your front or backyard. A flood is categorized as an excess of water on land that is normally dry. It only takes one storm to produce enough rain to obtain an excess of water on your property. Make sure you are protected and give us a call for your free quotes today!